Jyothy Laboratories

Jyothy Laboratories

Marico, Kansai Nerolac, Phoenix Mills, Jyothy Labs, Sterlite Tech, IRB

Marico, Kansai Nerolac, Phoenix Mills, Jyothy Labs, Sterlite Tech, IRB

Jyothy Laboratories: Q3FY11 results

Jyothy Laboratories: Q3FY11 results

Jyothy Laboratories

Jyothy Laboratories

Jyothy Labs, Brigade Enterprises, Dalmia Cement, Century Textiles

Jyothy Labs, Brigade Enterprises, Dalmia Cement, Century Textiles

Jyothy Labs

Jyothy Labs

Annual Report - Jyothy Laboratories - 2009-2010

JYOTHY LABORATORIES LIMITED

ANNUAL REPORT 2009-2010

DIRECTOR'S REPORT

To,
The Members,

Your Board of Directors is pleased to present the Nineteenth Annual Report
together with the Audited Financial Statements for the year ended March 31,
2010 compared with previous period (July 1, 2008 to March 31, 2009) as
follows:

Jyothy Labs

Jyothy Labs

Jyothy Laboratories

Investors with medium-term perspective can consider buying the stock Jyothy Laboratories (Rs 180.2). The stock has been on a steady long-term uptrend since it touched the life-time low of Rs 42, recorded in October 2008. However, after marking an all-time high of Rs 204.6 on March 8, the stock was on short-term correction. The intermediate significant support in the range between Rs 155 and Rs 160 arrested the stock's decline in late April. The long-term uptrend-line also provided support around that range. Subsequently, the stock bounced, penetrated its 21- and 50-day moving averages during early May and is trading above the averages. We notice that there is an increase in volume over the past two trading sessions. The daily relative strength index has re-entered the bullish zone from the neutral region. The week RSI has also entered the bullish zone, reinforcing bullish momentum. Moreover, both daily and weekly moving average convergence and divergence indicators are featuring in the positive territory.

We are bullish on the stock from a medium-term point of view and believe it has the potential to head higher to our price target of Rs 210 in the forthcoming weeks. Investors with medium-term perspective can consider buying the stock with stop-loss at Rs 165. Short-term traders can buy for a target of Rs 195 with stop-loss at Rs 172.

Follow up - Hindustan Construction Co (Rs 118.5)

Following volatile sessions, the stock almost ended the week around our recommended price level. We retain our medium-term bearish view with target and stop-loss indicated for this stock in the previous week; though for short-term traders the stop-loss would have triggered.


via BL

Jyothy Labs

It is FMCG makers which can deliver strong volume growth that have been outperformers in the stock market in recent months. That's why Indian players such as Marico, Dabur India and Godrej Consumer have seen a sharp expansion in their PE multiple to 25-30 times over the past year.

It is in this context that mid-sized FMCG company Jyothy Labs appears to be a good investment proposition. A value-for-money positioning for all its brands, extensive rural market presence and largely volume-driven growth suggest that recent buoyancy in the company's sales could be sustained. At the current market price of Rs 158, the stock is among the cheapest FMCG plays trading at 16 times its trailing 12-month earnings.

From being heavily dependent on just one brand, Ujala fabric whitener five years ago, Jyothy Labs has managed to broad-base its portfolio, adding Maxo mosquito repellants (36 per cent of 2008-09 revenues), Exo dishwash products (17 per cent) and a few smaller brands such as Jeeva soap and Ujala washing powder (10 per cent contribution).

Improving growth

After delivering sluggish numbers in the maiden year after its listing, Jyothy Labs has managed to post superior growth over the past year and a half. It managed a 27 per cent growth in adjusted sales and profits in the curtailed financial year ended March 2009 (the company reported numbers for 9 months due to a change in accounting year). This has been followed by a 34 per cent expansion in revenues and 56 per cent net profits growth in the first half of this year.

Over the past three years, the company has more than doubled its gross block to Rs 228 crore, without taking recourse to equity raising (the IPO in 2007 was an offer for sale by PE investors) or adding debt to the balance-sheet.

Gaining share

Jyothy Labs' brands increased their market share, even in the hotly competed segments of the FMCG business. While the flagship brand, Ujala fabric whitener has seen its market share climb from 68.5 per cent to 73.5 per cent between 2006 and 2009, Maxo mosquito repellant has seen shares rise from 19 to 22.8 per cent. Both these categories feature deep-pocketed competitors such as Hindustan Unilever, Godrej and Reckitt Benckiser. The company's expanding distribution presence in the South has also helped its Exo dishwash products double their South India market share from 11.7 to 23.8 per cent over the same period.

While Jyothy Labs' overall margin profile is lower than that of larger FMCG peers such as Dabur India or Godrej Consumer, it has managed to keep its adspend to sales ratio in the moderate 8-9 per cent range over the past three years, even while most other players saw a steep escalation in these spends to 12-13 per cent of their sales.

The company expects to keep adspend within this range, expanding market share mainly through investments in bettering its distribution reach.

Shift to value

The accelerated growth for Jyothy Labs is in line with the growth momentum witnessed by several smaller and mid-sized FMCG companies in this period. Mass market FMCG brands — whether in laundry, soaps or smaller categories — have seen strong growth momentum over the past year, helped by two factors.

One, the combination of upbeat farm product prices, higher support prices and better rural credit have helped keep rural and semi-urban demand for products quite strong, despite an erratic monsoon.

Jyothy Labs, with 60 per cent of its revenues originating from rural areas and an expanding distribution presence outside of urban India, has been a beneficiary of this trend. Two, the inflationary spiral of 2007-08 has prompted a consumer shift towards value offerings, helping regional and mid-sized players which have kept product prices under check.

With Jyothy Labs making almost no changes to its priceline over the past year, it has witnessed healthy volume-driven growth. In fact, packaging materials and plastics make up a chunk of raw material costs for the company and prices for these remain well below 2008 peaks.

The lag between commodity price corrections and their actual impact on costs and the three-four month raw material inventory held by the company may shield its margins from the increases in crude oil prices for the next couple of quarters.

The fact that the company has refrained from selling price increases for much of the past two years also lends it the flexibility to increase prices, if absolutely necessary, over the next year or two. A recent foray into laundry services, at a minimal investment may also lift overall margins, if it clicks.

via BL

Jyothy Laboratories Ltd

Investors with a medium-term perspective can consider buying Jyothy Laboratories stock.

The long-term down-trend in this stock was arrested by the formation of ascending triangle price pattern spanning between mid October 2008 and early June.

This pattern paved the way for a strong uptrend since mid May. The medium-term outlook is positive for the stock as the weekly indicators are projecting bullishness. The weekly traded volume is increasing over the past three weeks.

The stock has the potential to trend up to Rs 155 in the medium-term.

Though the stock can erase some of the recent gain, medium-term investors can utilise dips to accumulate the stock while maintaining stop at Rs 84.

via BL

Jyothy Laboratories Ltd

Jyothy Laboratories Ltd

Jyothy Laboratories Ltd

Jyothy Laboratories Ltd

Jyothy Laboratories,ICICI Bank, HPCL, IOCL,Suzlon Energy, Automobiles

Jyothy Laboratories,ICICI Bank, HPCL, IOCL,Suzlon Energy, Automobiles

Jyothy Laboratories IPO - Listing

Jyothy Laboratories IPO will list today

Please see Grey Market Premiums.

Our advice is to book profits if it goes to around 1000 (unlikely) and switch to ITC

eClerx, BGR Energy, Transformers, Brigade Enterprises, Jyothy Lab

eClerx Services 270 to 315 95 to 100


BGR Energy 425 to 480 380 to 400


Transformers & Rectifiers 425 to 465 180 to 200


Brigade Enterprises 351 to 390 110 to 120


Jyothy Lab. 690 230 to 240


Burnpur Cement Ltd. 12 2 to 3


Edelweiss 825 780 to 800


Renaissance Jewellery 150 20 to 25


Kolte Patil 145 75 to 80


Kaushalya Infra 60 13 to 14


SVPCL 42 - 3 to -4

Grey Market - Burnpur, BGR Energy, eClerx, Edelweiss, Jyothy Labs

Jyothy Lab. 620 to 690 220 to 225


Burnpur Cement Ltd. 12 8 to 9


eClerx Services 270 to 315 80 to 90


BGR Energy 425 to 480 240 to 250


Edelweiss 725 to 825 750 to 775

Renaissance Jewellery 125 to 150 20 to 25


Kolte Patil 125 to 145 75 to 80


Kaushalya Infra 50 to 60 12 to 15


SVPCL 42 - 3 to -5

Jyothy Laboratories Allotment Status

Jyothy Laboratories Allotment Status can be checked at Intime

(in 2 weeks/Dec 2nd Week)

Jyothy Laboratories Subscription Details

Qualified Institutional Buyers (QIBs) - 66.4123 times

Non Institutional Investors - 49.8987 times

Retail Individual Investors (RIIs) - 14.6718 times

OVERALL - 45.83 times

Jyothy Laboratories - IPO

Jyothy Laboratories - IPO